Risk

The vast American market can be overwhelming. The sheer size, varying demographics and distance between major cities will require individual planning, market research and constant adjustment for each individual site. Important differences in our seemingly similar cultures should be accounted for. Although the UK and America do share a common history and language, their specific consumer behaviours and expectations are unique. The long list of competitors, many of which are already very well established and trading successfully, will need to be analysed and learned from. Along with these individual concerns come standard financial factors as well. Expansion into an overseas market will always require additional costs such as International freight, new production and distribution cites, overseas rental fees and insurance, marketing, promotion, recruitment and training. Each of these elements represent a risk which can greatly affect net profits and therefore must be factored into the expansion strategy in advance.